Representatives from petroleum giants Chevron, ConocoPhillips, and ExxonMobil are planning to meet with the Trump administration later this week to discuss investment opportunities in Venezuela following the U.S. military's capture of former President Nicolás Maduro.
The meeting is expected to take place Wednesday with Energy Secretary Chris Wright, who is attending the Goldman Sachs Energy Conference in Miami. The discussions come as President Trump pushes U.S. oil companies to invest heavily in reviving Venezuela's once-dominant energy sector.
US oil stocks jumped Monday after President Trump pledged to revive the Venezuelan energy sector. Chevron Corp., the only American oil major currently operating in Venezuela under a special Treasury Department license, surged as much as 6.3%, marking its biggest single-day gain since April.
Venezuela sits on the largest proven crude oil reserves in the world at 303 billion barrels and is a founding member of OPEC. However, years of mismanagement and U.S. sanctions have devastated the industry. Today, Venezuela produces just over 1 million barrels of oil per day—only about 0.8% of global crude production.
Despite Trump's enthusiasm, industry sources indicate American oil executives remain cautious. A full revival of Venezuela's oil industry could take many years and cost upwards of $100 billion, according to Francisco Monaldi, director of Latin American energy policy at Rice University's Baker Institute.
"Companies will be wary to enter without a stable security environment, and very favorable terms to reduce the risk. Especially with markets oversupplied and prices low in the near term," said Eurasia Group analyst Gregory Brew.
Chevron currently produces about 150,000 barrels per day in Venezuela under a sanctions license that the Trump administration recently extended. The company has maintained a presence in the country even as other major oil firms withdrew.
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